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Dec 31, 2023
Northwest Pipe Q4 2023 Earnings Report
Announced fourth quarter and full year 2023 financial results.
Key Takeaways
Northwest Pipe Company reported a 3.1% increase in net sales to $110.2 million for the fourth quarter of 2023, compared to $106.8 million in the fourth quarter of 2022. Net income was $5.4 million, or $0.54 per diluted share, compared to $8.0 million, or $0.79 per diluted share, in the fourth quarter of 2022.
Net sales increased 3.1% to $110.2 million.
Gross profit decreased 11.8% to $19.3 million.
Net income was $5.4 million, or $0.54 per diluted share.
SPP backlog was $273 million as of December 31, 2023.
Northwest Pipe
Northwest Pipe
Northwest Pipe Revenue by Segment
Revenue by Segment
Engineered Steel Pressure Pipe Revenue
CapyFin.comPrecast Infrastructure and Engineered Systems Revenue
CapyFin.com Forward Guidance
First quarter SPP net sales are expected to decline compared to the fourth quarter of 2023, but expected to remain well above first quarter 2023 levels. Year-over-year SPP margins in the first quarter are expected to improve moderately compared to 2023. Precast net sales in the first quarter are expected to be similar to the same quarter last year with near-term margins remaining compressed.
Positive Outlook
- Anticipate a significantly stronger bidding year in 2024 for SPP.
- Expect year-over-year SPP margins in the first quarter to improve moderately compared to 2023.
- Growth strategy remains focused on growing our Precast business to reduce the cyclicality of our SPP operations
- Growth strategy remains focused on improving our overall margins
- Growth strategy remains focused on improving cash flow generation
Challenges Ahead
- First quarter SPP net sales are expected to decline compared to the fourth quarter of 2023 due to typical seasonality and severe weather conditions.
- Precast margins were compressed due to reduced overhead absorption on lower demand.
- Early 2024 weather events have also caused unscheduled downtime in our Precast facilities, further suppressing the already seasonally slow first quarter.
- Near-term Precast margins remaining compressed.
- The SPP business had one of the smallest bidding volume periods we have seen in many years
Revenue & Expenses
Visualization of income flow from segment revenue to net income